Amazon hopes to chill Steam with game downloads

Amazon is not so silently preparing to open a software and game store that …

Amazon is continuing its venture into digital distribution in a big way. Between rekindling the ebook and a DRM-free MP3 store, it's clear that the 800lb. gorilla of Web retailing is looking to cut down on its stock of cardboard boxes. Now, as we mentioned in our Opposable Thumbs journal yesterday, an inconspicuous job posting reveals that Amazon is planning to spearhead the software industry's move towards digital distribution.

Amazon's job opening, "Software Development Engineer - Video Game and Software Downloads," can't be read in many other ways than the obvious. The company quietly opened an uninspiring Software Downloads section with nothing but tax software for now, but this job posting confirms that Amazon's sights are set much higher than helping you score a federal refund once a year. Digital distribution and SaaS (Software as a Service) are all the rage right now, exhibited in everything from online backup services to iPhone Quicken and even empty software boxes. For a while now, Valve's Steam service has been at the forefront of a major digital distribution arena, offering a desktop client for browsing, demoing, and purchasing video games from across the industry.

Judging from Amazon's new Software Downloads and the title of its job posting, the company is gearing up to take on everyone in the software sales business, including brick and mortar stores, Steam, and any other outlet that ships 1s and 0s instead of cardboard boxes and packing slips. Amazon's outlet will most likely utilize the same Downloader middleman utility that the MP3 Downloads store does, allowing users some control over how applications are downloaded and installed. A big question, however, is whether the company will take the next step and help users manage and update their applications.

Delivering books and other physical goods is one thing, but most applications need at least the occasional updates to fix bugs and account for OS changes. While some developers have tools for providing updates to their applications (such as the self-updating Mac OS X framework Sparkle), Amazon could add a significant value to its digital distribution offering by helping software customers to keep their products updated after the sale.